IRS Will Not Issue Tax Refunds During Government Shutdown

"Versus a person who doesn't owe the IRS and is expecting a refund, they won't be getting a refund".

The continuing government shutdown is having an impact on the agency Americans love to hate; the Internal Revenue Service.

While it's ordinarily true that the early bird gets the worm, if the government remains shut down, when it comes to taxes, it may not pay to get returns in early. Typically during a shutdown, the IRS will process returns and accept amounts due from taxpayers. But if you're due a refund, well, you may have to wait a long time to get it.

According to CNN, the IRS has yet to announce when people can begin submitting their tax returns, but "any gap in individuals not receiving money they're owed will put pressure on President Trump and lawmakers to strike a deal quickly".

That is what callers to the IRS hotline heard and will continue to hear when calling the government agency's hotline with a tax question.

Tax-filing season normally begins in mid-January and most people receive there W-2 forms towards the end of the month.

During the current shutdown, the IRS has lost funding and is operating with about 12 percent of its employees according to a UBS bank investment research report.

The owner of Curtis Accounting and Tax Services said there will nearly certainly be a delay in processing returns.

As the government remains closed, worry spreads about what this means for us, the taxpayers.

The Wall Street Journal reported that by February 2, 2018, the IRS had paid $12.6 billion in refunds to more than 6 million households and by February 16, that figure increased to $101.2 billion for almost 32 million households.

One other area in which the IRS may have problems is the continuing implementation of the 2017 tax legislation passed by Republicans in Congress and signed by Trump.

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